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What is a loan

A loan is essentially a debt between a lender and a borrower.  In a load the borrower receives an amount of money from the lender and is asked to pay back the amount of money provided by the lender at a later date. Usually a loan is paid back is regular installments or repayments.  There is usually an amount stated by the lender which is refferred to as interest, this is in fact the cost of the loan made by the lender to the borrower.

Types of Loan

There are several types of loan available to the borrower, a secured loan, a unsecured loan , a bridging loan etc.. Many organisations give different names to the types of loans they offer, a payday loan is a prime example of this, however this is normally a small loan paid over a very short period to which there is normally a high cost.

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